USD/CAD Price Analysis: Bulls may tap March’s high at 1.2900 amid a bullish pennant formation

• The greenback bulls are firmer amid a bullish pennant formation.
• The RSI (14) has shifted its range from 40.00-60.00 to 60.00-80.00, which signals for a fresh rally going forward.
• The 50- and 200-period EMAs are scaling higher, which adds to the upside filters.

The USD/CAD pair is juggling in a range of 1.2810-1.2826 on Tuesday after a strong upside move from Monday’s low at 1.2740.

On an hourly scale, the major is forming a bullish pennant pattern which signals a directionless move after a strong run towards the north and leads to a further upside if consolidation breaks out decisively.

Generally, a consolidation phase denotes the placement of longs by the market participants who didn’t capitalize upon the initial rally or those investors place bids, which prefer to enter in an auction after a bullish bias sets in.

Earlier, the greenback bulls found significant bids near 61.8% Fibo retracement (placed from March 3 low at 1.2587 to March 8 high at 1.2900) at 1.2708.

The asset is comfortably holding above the 50-period and 200-period Exponential Moving Averages (EMA) at 1.2781 and 1.2772 respectively, which add to the upside filters.

The Relative Strength Index (RSI) (14) has shifted its range from 40.00-60.00 to 60.00-80.00, which signals for a fresh rally going forward.

For more upside, bulls need to surpass Monday’s high at 1.2827 decisively, which will send the greenback bulls towards March 8 high at 1.2900 and 20 December 2021 high at 1.2964.

On the flip side, loonie bulls can dictate levels if the major slips below Friday’s high at 1.2794. This will drag the pair to 50% and 61.8% Fibo retracements at 1.2745 and 1.2708 respectively.

USD/CAD hourly chart